1. Supply Chain Logistics Management
Chapter 9: Advanced Planning and Scheduling

2. APS Overview X X X Period 3 Period 2 Plants Period 1 DCs Customers
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Sample APS Planning Situation
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4. APS System Modules ERP/Legacy System Requirements Optimization
Demand Management
ERP/Legacy System
Resource Allocation
Resource Management
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

5. Demand Management Forecast data maintenance Marketing data entry
Sales projections
Promotions
Customer information
Competitive information
Responsibility
Forecast development
Qualitative
Quantitative
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

6. CPFR in Retail IT Environment
Trading Partner
Collaborate
CRM
APS
ERP
Promotions
Forecasts
Item Catalog
Orders
CPFR Solution
Supplier
Generate
Demand
Determine
Rqmts
Make to
Internet
EDI
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

7. Profile Management Mix projection
Bottom-up or top-down rationalization
Price application
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

8. Resource Management Distribution requirements planning
Capacity planning
Materials planning
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

9. Available to Promise (ATP)
Inventory assignment
Commit production, Work-in-process (WIP) or replenishment
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

10. APS Examples Demand management Factory planning
Transportation planning
Integrated resource planning
Supply chain design
Pricing
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

11. APS Characteristics Driven by forecast and order requirements
Constrained resource planning
Integrated supply chain decision making
Time phased
Requires high data integrity and accuracy
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12. APS Key Features Constraint management Concurrent planning
Synchronized planning
Modeling
Optimization
Simulation
Available-to-promise capability
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

13. Ft = (Bt x St x T x Ct x Pt) + I
Forecast Model
Ft = (Bt x St x T x Ct x Pt) + I
Where:
Ft = Forecast quantity for period t;
Bt = Base level demand for period t;
St = Seasonality factor for period t;
T = Trend component – index reflecting increase
or decrease per time period;
Ct = Cyclical factor for period t;
Pt = Promotional factor for period t;
I = Irregular or random quantity.
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

14. Top-down Forecast Plant DC Aggregate Forecast 10,000 units Field DC 1
Historical Split
10%
40%
30%
20%
Field DC 1
Forecast
4,000 units
Field DC 2
Forecast
3,000 units
Field DC 3
Forecast
2,000 units
Field DC 4
Forecast
1,000 units
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

15. Forecast Management Process
Forecast Database
Forecast Process
Forecast Users
Orders
History
Tactics
Forecast Administration
Finance
Marketing
Sales
Production
Logistics
Forecast
Technique
Forecast
Support System
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

16. Comparative Forecast Errors
100 60 40 20 80
National
SKU-Location
Brand Forecast Level
Percent Error
High
Avg
Low
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.